DIGITAL PAYMENTS

BY-
SHUBHAM-01721288819
KUSHAL-00821288819
Introduction & Meaning
Journey of Digital Payment in India
The main reason of increase in Digital Payments
NPCI
Entities involved in an online payment system
Process of Online Payments
Examples of Online Payments
Features of E-Payments
Barriers in digital payment
Growth of digital payment in India
Digital Rupee
•The world of digital or e-payments has terms which may be unfamiliar to a
new reader

•Payments are made using payment instruments Cash for example, is a

payment instrument. So too are checks. However, when it comes to digital
payments, it can be confusing because of the range of different terms used for
similar services, sometimes even within the same country!

•In India’s journey towards E-payments, digitization, merchants, as well as

customers, are getting comfortable adopting new digital technologies.

•Customers are happy with browsing and shopping at any time from anywhere
with just a few clicks and along with this rise of online shopping and
eCommerce, E-payments are gaining widespread popularity.

•COVID as the limitation it has imposed on people who made online payments
the need of time. Many businesses are now offering their products and
services online.

•However, if you are a business and want to accept e payments, you have to
work on your electronic payment system to provide better and secure service
for your customers.
 • An e-payment or Electronic Payment
system allows customers to pay for the services
And to know via electronic methods. Transactions are made
about the e- on the Internet
payment • They are also known as online payment
systems. Normally e-payment is done via debit,
system here credit cards, direct bank deposits, and e-
is everything checks, other alternative e-payment methods
like e-wallets, bitcoin, cryptocurrencies, bank
you need to transfers are also gaining popularity.
know. • In a nutshell, e-payments are considered a
prompt and secure alternative to traditional
payment methods, such as bank transfers,
checks, etc.
Credit Card Started on 1981
The credit card market in India started out in 1981 when Visa issued the
card. Andhra Bank was the pioneer of credit cards in India.

ATM Card started on 1987

Hongkong and Shanghai Banking Corporation introduced the ATM
concept in India in 1987. The first ATM was set up in Andheri East,
Mumbai.

Internet Banking started on 1996 Journey of

Digital
Internet banking arrived in India in the late 1990s. ICICI was the first
bank to champion its usage. and introduced internet banking to its
customers in 1996. With lower internet costs and increased awareness
about electronic media, online banking established itself only in 1999

Mobile Banking started on 2002

In the year 2002 Mobile Banking was started in India by way of SMS
Payment in
India
Banking. Now it is becoming at new generation platform in India. Mobile
Banking is useful for the customers for making inquiries about their
balances on mobile phones.

UPI started on 2016

It works by transferring money between two bank accounts along a
mobile platform. The system is said to be a safe and secure method of
transferring money between two parties, and eliminates the need to
transact with physical cash or through a bank. The pilot system was
launched in India on April11, 2016.
 Demonetization.
•In November 2016, the Government of India announced the demonetization of all 500 and
The main reason of 1,000 banknotes of old currency. It also announced the issuance of new 500 and 2,000
banknotes in exchange for the demonetized bank notes. The announcement of
increase in Digital demonetization was followed by prolonged cash shortages in the weeks that followed, which
created significant disruption throughout the economy. People seeking to exchange their
Payments banknotes had to stand in lengthy queues, and several deaths were linked to the rush to
exchange cash. The debit card point of sale transactions was twice the size of value
suggested by trend before the demonetization. The UPI transaction was in a peak. after
demonetization.
 Expanding use of Smartphone.

The main reason of Four years ago, mobile payments didn't even exist in India. But the smartphone
increase in Digital wave has hit the whole nation. The next few years will see about 70-80% of the
population owning smart phones. Not too long from now, we would simply be
Payments able to tap our card or phone to a device to purchase a product or a service
 Offers, Rewards, Cashbacks and Discounts
The main reason of One thing that attracts all consumers is the promise of getting something free
with a product, or some kind of a reward, cashback, or discount. These are some
increase in Digital really impactful factors that are responsible for consumers preferring digital
payments as opposed to other payment methods. This shift will inevitably lead to
Payments the so-called conventional methods of today, turning into unconventional ones.
When we make digital payments. we get more spot discounts with immediate
benefits.
(NPCI) National Payment
corporation of India
•National Payments Corporation of India (NPCI), an umbrella organization for
operating retail payments and settlement systems in India, is an initiative of
Reserve Bank of India (RBI) and Indian Banks' Association (IBA) under the
provisions of the Payment and Settlement Systems Act, 2007, for creating a robust
Payment & Settlement Infrastructure in India.
•Considering the utility nature of the objects of NPCI, it has been incorporated as a
"Not for Profit" Company with an intention to provide infrastructure to the entire
Banking system in India for physical as well as electronic payment and settlement
systems. The Company is focused on bringing innovations in the retail payment
systems using technology for achieving greater efficiency in operations and
widening the reach of payment systems.
• NPCI, during its journey, has made a significant impact on the retail payment
systems in the country. Dedicated to the nation by our former President, Shri.
Pranab Mukherjee, endorsed by the Hon'ble Prime Minister, Shri Narendra Modi
and later made the card of choice for the ambitious Pradhan Mantri Jan Dhan
Yojana, RuPay is now a known name. RuPay is an Indigenously developed Payment
System - designed to meet the expectation and needs of the Indian consumer,
banks and merchant eco-system.
Entities
involved in The merchant
an online The customer / the cardholder
The issuing bank
payment The acquirer
Payment Processor
system Payment Gateway
Process of Online Payments

• Customer finalizes the

product/service and chooses
the payment method to initiate Payment
the transaction.
• Depending on the payment authentication 
method, the customer enters • After the successful
the required information like authentication
card number, CVV, personal • The information submitted by
details, Virtual ID, expiration
process, payment
the customer along with other
date, PIN/Password , etc. details like payment from the customer’s
• The chosen payment method information, customer’s bank gets transferred
either redirects the customer to account information is into the merchant’s
an external payment page or a authenticated by the operator.
bank’s payment page to • The operator can be account by the online
continue the payment process. a payment gateway or any payment service
Payment other solution involved. If provider.
initiation 
everything gets authenticated
positively, the operator reports Payment
a successful transaction.
• On the contrary, if there is any
settlement 
problem with any of the
authentication checks, the
transaction fails.
• After the successful
transaction, the customer gets
a payment confirmation.
Examples of Online
Payments
•Internet banking(NEFT, RTGS, IMPS)
•Card payments
•E cash/Cheque
•Mobile wallet (Paytm Wallet)
•UPI
•Easy and convenient
Digital payments are easy and convenient. You do not need
to take loads of cash with you. All you need is your mobile
phone or Aadhaar number or a card to pay. UPI apps and E-
Wallets made digital payments easier.

•Lower risk
Digital transactions are much more secure than traditional
transactions because they are processed by secure
gateways which are hard to tamper with. There is a security

Features of
in digital payment because it will be reflected in both sender
and receiver bank account statement and there is no
physical cash is there so there is no chance of theft of cash
it is very secure.

•Virtual Terminal
A virtual terminal facilitates card not present transactions. It
allows the merchant to make payments on behalf the
Digital Payment
customer. The customer isn't required to present his card for
the physical examination by the merchant.

•Fast and convenient

Digital payment is very fast it requires very less period of
time to transfer money from one account to another and
they are very convenient because there is no physical
existence of sender is required and we can do many works
while sitting at home
Barriers in Digital Payment
• Illiteracy
Illiteracy is the biggest problem in India. In rural are most of the people do not use digital payment they are using cash. do not have proper knowledge about digital
payment. Even literates do not use digital payment, but the number is less than illiterate.

• Fear of losing money

The people who are not using digital payment are being afraid of losing money.

• Charges in card payment

At many places there are 1-2% charges on card payment mostly on credit card payment. These charges are taken by banks, so people do not want give extra charges.

• Merchant do not accept digital payment

Digital Payment will be shown on bank account statement so it will be taxable for merchants that's why they are not taking payment.

• Habit of using physical cash

People are habitual of using cash they are not using digital payment. They are more comfortable in doing physical transaction.
Growth of Digital Payment in India

•Growth of Digital Payment in India In 2019, I don't think that anybody is

there who don't know about the digital payment systems. As everybody
nowadays prefers to be cashless and there are various new techniques
that are become popular in 2019 like google pay, phone pay, BHIM UPI,
paytm and many more. The debit cards and credit cards are always in use
and will stay for the long run. In 2022, one will be a new digital India
where the retail chains will also adapt the digitalization easily.
•The demonetization teaches a very great lesson that goes cashless. Our
Prime minister Narendra Modi has taken a very crucial step and help in
the growth of payment industry as well. This will increase the number of
digital payment channels in the India.
 Digital Rupee
Digital Rupee or Central Bank Digital Currency (CBDC)
will be the next attempt by the RBI to boost India's
digital economy. Presented at the Union Budget 2022-
23 by Finance Minister Nirmala Sitharaman, the
concept of the Digital Rupee is meant to take some
inspiration from cryptocurrencies like Bitcoin, but with
the regulations of the central bank.

Digital Rupee or CBDC will work "using blockchain and

other technologies," the Finance Minister said during
the budget presentation. So that is one aspect that all
the cryptocurrencies share with the upcoming digital
currency of India. The other is the problem it means to
solve - India's digital currency will "lead to a more
efficient and cheaper currency management system,"
the minister highlighted.
THANK YOU